Feedstock, Olefins and Aromatics

US Jacobs wins more work for Saudi lube oil refinery expansion

ICIS News : 12-Feb-13 14:16

HOUSTON (ICIS)--Jacobs has won another contract for work to expand Saudi Aramco Lubricating Oil Refining’s (Luberef) lube oil refinery in Yanbu, Saudi Arabia, the US-based petrochemicals engineering firm said on Tuesday.

Jacob’s contract covers project management consulting for a new lube oil unit, a new sulphur complex, a new hydrogen manufacturing unit, an expansion of the propane de-asphalting unit, as well as for utilities, tanks and infrastructure.

Jacobs did not disclose the contract value but it said that the overall expansion project cost is estimated at about $1bn (€750m).

The expansion is expected to increase the refinery’s base oil production capacity to meet future demands for GR-II and GR-III base oils; increase the GR-I Bright stock to almost double current production; produce higher-value by-products such as naphtha, diesel, and kerosene; and to satisfy Saudi Arabia’s requirements for drilling fluid, which is currently being imported, Jacobs said.

Jacobs had also been working on the project's front end engineering design (FEED) phase.

“After our successful FEED efforts, we welcome the opportunity to continue to support Luberef's production of higher-grade clean fuels," said Jacob’s group vice president Bassim Shebaro